New Delhi [India], August 11 (ANI): The Central government will release Rs 3,200 crore installment of Pradhan Mantri Fasal Bima Yojana on Monday. This is the first installment given to farmers, with Rs 8,000 crore to be released later, Union Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan said on Monday.
Announcing the package in a post on X, the union minister said that insurance companies that do not deposit the amount to disaster-affected farmers on time will face a 12 per cent interest penalty, which will be directly given to farmers.
“Today, approximately 30 lakh farmers affected by natural disasters will have ₹3200 crore deposited into their accounts under the Pradhan Mantri Fasal Bima Yojana. This is the first installment, so farmers whose accounts do not receive funds today should not worry. Approximately ₹8000 crore will be released later,” the union minister’s X post read in Hindi.
“In natural disasters, crops get destroyed, and when that happens then it is not just the crops which get destroyed but the lives of farmers too, so for that the Prime Minister made Pradhan Mantri Fasal Bima Joyana, which became a boon for all the affected farmers,” the union minister said in the video posted on X.
Expressing his commitment to farmers’ welfare, Minister Chouhan called on the farmers to address any complaints about the scheme to him.
“Farmer brothers and sisters, serving you is my worship of God. If you have any complaints regarding the crop insurance scheme, please inform me. We always stand with you,” he added.
Talking about the interest payments the insurance companies will have to pay on delayed payment, he added, “This scheme has become a boon for disaster-affected farmers. To ensure farmers receive funds on time, we have decided that if an insurance company fails to deposit the money within the stipulated time frame after a claim, it will have to pay 12% interest, which will go directly to the farmer’s account.”
Pradhan Mantri Fasal Bima Yojana, marked its nine-year anniversary on February 18, 2025, celebrating close to a decade of empowering the farmers of India, according to an official statement from the Ministry of Agriculture and Farmers Welfare.
The scheme, launched in 2016, offers a comprehensive shield against crop losses caused by unpredictable natural hazards. This protection not only stabilises farmers’ income but also encourages them to adopt innovative practices.
“Crop insurance is an important risk mitigation tool to protect farmers from natural calamities. It aims at providing financial support to farmers suffering crop loss/damage arising out of natural calamities like hailstorm, drought, floods, cyclones, heavy and unseasonal rains, attack of disease and pests etc,” the statement added.
The Union Cabinet in January 2025 approved the continuation of Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme till 2025-26 with a total budget of ₹69,515.71 crore.
Though the scheme is voluntary for farmers, non-loanee farmers’ coverage has increased to 55% of the total coverage under the scheme during 2023-24, which shows the voluntary acceptability/popularity of the scheme. (ANI)
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